The National Living Wage will rise to £13.21 an hour from 1 April 2027, an increase of 3.9%, or 50p an hour. The new rate applies to workers aged 21 and over and was announced on 28 October 2026, alongside Budget 2026, after the government accepted the Low Pay Commission's recommendations in full. The rates for younger workers and apprentices rise by the same 3.9% on the same date.

The National Living Wage is the legal minimum hourly rate for workers aged 21 and over in the UK. It is different from the voluntary real Living Wage calculated by the Living Wage Foundation, and it is not the same as the National Minimum Wage rates that apply to younger workers. This guide sets out the full new rates, when they start, how the figure was decided, and what the rise is worth in a working week.

The new rates from 1 April 2027

The government announced four hourly rates and one daily accommodation offset, all rising by 3.9% from 1 April 2027:

National Living Wage, aged 21 and over: £13.21 an hour, up 50p from £12.71.

18 to 20-year-olds: £11.27 an hour, up 42p from £10.85.

16 to 17-year-olds: £8.31 an hour, up 31p from the current rate.

Apprentice rate: £8.31 an hour, up 31p. The apprentice rate applies to apprentices aged under 19, and to those aged 19 or over who are in the first year of their apprenticeship.

Accommodation offset: £11.53 a day, up 3.9%. The offset is the maximum amount an employer can deduct from pay for accommodation it provides.

Some early reports gave the new National Living Wage as £13.20 an hour. The official figure published by the government and the Low Pay Commission is £13.21, and that is the number employers should use for payroll and budgets.

When do the new rates start?

The new rates apply from the first pay reference period starting on or after 1 April 2027. That is the standard rule for minimum wage upratings: the rate changes on 1 April each year, and the new rate applies from the first pay period that begins on or after that date. Until then, the current rates apply, with the National Living Wage at £12.71 an hour.

Workers paid weekly, fortnightly or monthly will therefore see the new rate at slightly different times depending on when their pay period starts, but no worker aged 21 or over should be paid less than £13.21 an hour for hours worked in a pay period starting on or after 1 April 2027.

How was the £13.21 rate decided?

Minimum wage rates are set by the government on the advice of the Low Pay Commission, an independent body that advises on the National Minimum Wage and the National Living Wage. The Commission met in October 2026, agreed its recommendations, and submitted its advice to the government on 23 October 2026. The government announced on 28 October 2026 that it had accepted the recommendations in full.

The Commission's remit asks it to use two-thirds of median hourly earnings as the key reference point, while taking account of the cost of living, including inflation forecasts between April 2027 and March 2028. Its recommendation of £13.21 does not reach that reference point: the Commission estimated that a rate of £13.44, a rise of 5.7%, would have been needed to reach two-thirds of median earnings by October 2027. It nevertheless recommended 3.9%, saying the rise was above the range of inflation forecasts for April 2027 to March 2028 and still made progress towards the reference point.

Baroness Philippa Stroud, chair of the Low Pay Commission, said the recommended rate would represent a real-terms increase across the period to April 2027, protecting the living standards of low-paid workers. The Commission's letter notes that this is her third and final year as chair.

What is the rise worth in a working week?

For a worker aged 21 or over on a 37.5-hour week, the National Living Wage is worth £495.38 a week in gross pay from April 2027, or about £25,760 a year, before tax. On the current rate of £12.71, the same week is worth £476.63, or about £24,785 a year. The rise is therefore worth £18.75 a week, or about £975 a year, for a full-time worker on the National Living Wage.

For an 18 to 20-year-old on the same hours, the new rate of £11.27 is worth £422.63 a week, up from £406.88 at the current £10.85 rate. These are gross figures, before income tax, National Insurance and pension deductions, and they assume the worker is paid for every hour worked at the minimum rate. Many workers earn above the minimum, and the figures do not include overtime, bonuses or tips, which do not count towards the minimum wage.

National Living Wage versus the real Living Wage

The National Living Wage is a legal minimum set by the government. The real Living Wage is a voluntary rate calculated by the Living Wage Foundation, based on the cost of living, and employers choose whether to pay it. The two rates are often confused because of their similar names, and because Living Wage Week, which marks 25 years of the campaign in 2026, falls around the same time of year as the government's announcement.

The distinction matters for workers checking their pay: the legal floor from 1 April 2027 is £13.21 an hour for workers aged 21 and over. An employer that describes itself as a real Living Wage employer has voluntarily committed to a different, independently calculated rate, which is usually higher. The government's announcement does not change the real Living Wage, and the Living Wage Foundation sets its own rates on its own timetable.

What counts towards the minimum wage?

Tips, service charges and cover charges never count towards the minimum wage, so an employer cannot use tips to top pay up to £13.21. The rates are gross amounts for each hour of work, and they apply in England, Scotland, Wales and Northern Ireland.

Employers must apply the new rates from the first pay reference period starting on or after 1 April 2027. Common errors include failing to apply the annual increase on time and making deductions that take pay below the minimum. HM Revenue and Customs enforces the minimum wage, and penalties can reach 200% of the arrears owed, capped at £20,000 per worker. Workers who think they are being underpaid can check the rates on GOV.UK, raise the issue with their employer, and contact HM Revenue and Customs if it is not resolved.

The bigger picture

The government still wants to lower the National Living Wage age threshold to 18, so that 18 to 20-year-olds would eventually receive the full rate. For April 2027, however, the Low Pay Commission recommended keeping a separate, lower rate for 18 to 20-year-olds, with the same 3.9% rise as the National Living Wage, rather than moving them onto the full rate in one step.

The 2027 uprating is the latest step in a series of annual rises, and the next rates will be announced in the usual way ahead of April 2028. The Budget document also confirms that the National Living Wage and National Minimum Wage rates rise by 3.9% on 1 April 2027, alongside the other measures in Budget 2026, which was delivered by Chancellor John Healey on 28 October 2026.

Frequently asked questions

What is the National Living Wage from April 2027? £13.21 an hour for workers aged 21 and over, from 1 April 2027. It rises by 3.9%, or 50p, from the current £12.71.

What are the other minimum wage rates from April 2027? £11.27 an hour for 18 to 20-year-olds, £8.31 an hour for 16 to 17-year-olds and for eligible apprentices, and an accommodation offset of £11.53 a day. All rise by 3.9%.

When exactly does the new rate apply? From the first pay reference period starting on or after 1 April 2027. Until then, the current rates apply.

Is the National Living Wage the same as the real Living Wage? No. The National Living Wage is the legal minimum set by the government. The real Living Wage is a voluntary rate calculated by the Living Wage Foundation, and employers choose whether to pay it.

Sources: GOV.UK, Low Pay Commission recommendations take the National Living Wage to £13.21; GOV.UK, Low Pay Commission advice to Government on 2027 minimum wage rates; HM Treasury, Budget 2026. Rates as announced on 28 October 2026. Check GOV.UK for the latest rates.